The intent of this DCMA instruction is to ensure Administrative
Contracting Officers (ACOs) and Contract Administrators (CAs)
prepare and publish Federal Acquisition Regulation (FAR) and Defense
Federal Acquisition Regulation Supplement (DFARS) compliant contract
modifications and delivery orders, to include undefinitized contract
actions and provisioned items, in a timely manner using the
Modification and Delivery Order (MDO) eTool when appropriate.
MANAGERS' INTERNAL CONTROL PROGRAM. This instruction
contains managers' internal control provisions that are subject to
evaluation and testing as required by DCMA-FBP Managers' internal
Control Program Instruction.
Process
DCMA mandatory requirements that are not appropriate for CMO Commander/CMO Director/Center Director deviation approval authority are preceded by the Letters "ND". DCMA Instructions 501 Chapter 7 Request for Deviation/Waiver provides procedure for requesting a deviation or waiver to depart from a particular requirement of a current approved policy publication..
1. Review Procuring Contracting Officer (PCO) Issued Contract Modifications. When an ACO receives a modification issued by the PCO, the ACO should review the accuracy of the modification number and its content. If the modification contains errors beyond the ACO's authority to correct or there are attachments mission, the ACO should issue a Contract Deficiency Report (CDR) using the Electronic Document Access (EDA) system if the PCO that signed the contract or latest modification is registered in EDA. If the PCO is not registered in EDA, contact the responsible PCO by email or phone call. DFARS Procedures, Guidance, and Information (PGI) 204.270 states that all contracting officers shall maintain an account in the EDA system as required by DPAP Policy letter dated November 3, 2009. If program security requirements prohibit the use of unclassified automated systems including EDA, request for correction should be sent to the PCO using a secure communication method. The Browse Contract Mod Page within the Contract View eTool can generate and export an automated listing of modifications issued for the contract number you enter. It is recommended that this listing be used as the modification index. However, a manually prepared or system generated index maintained by the ACO within Electronic Document Workflow (EDW) system is also acceptable.
2. Prepare ACO Contract Modification. The Modification and Delivery Order (MDO) eTool is the Agency tool for issuing modifications. The DCMA Procurement Center shall utilize the Standard Procurement System as their contract writing system instead of MDO.
2.1. After validating the need for a contract modification, the ACO shall determine the type of contract modification to be issued. ACOs may issue contract modifications to make administrative changes to the contract or they may issue a modification to at the request of the PCO. Contract modifications may be either bilateral or unilateral.
2.1.1. A bilateral modification (see FAR 43.103 (a)) is signed by both the contractor and the contracting officer and is used to make negotiated equitable adjustments resulting from the issuance of a change order, to definitize letter contracts, and to reflect other agreements of the parties modifying the terms of the contracts.
2.1.2. A unilateral modification is signed only by the contracting officer and is used to make administrative changes (see FAR 43.103 (b)) that do not affect the substantive rights of the parties. For example a unilateral modification is used to make administrative corrections, to issue change orders, to issue termination notices and to make changes authorized by clauses other than a change clause such as: Property, Options, or Suspension of Work clauses.
2.1.3.1. For modifications to contracts and agreements, number the modification using a six position alpha-numeric added to the basic procurement instrument identification (PII) number or contract number. The first position identifies the office issuing the modification. The letter A is used to designate the contract administration office (example: A00001) and the letter P designates the procuring contracting office (example: P00001). See DFARS 204.7004(c) Modifications to contracts and agreements for additional explanation.
2.1.3.2. For modifications to calls or orders, use a two position alpha-numeric suffix, known as the call or order modification indicator, to identify a modification to a call or order. Modifications to a call or order issued by a contract administration office begin with 1A, 1B and so on through 9Z, followed by A1, A2, and so on to A9, then AA, AB, and so on through AZ. Modifications to a call or order issued by a purchasing office begin with 01, 02, and so on through 99, then B1 through B9, BA through BZ, C1 through C9, and so on through ZZ. See DFARS 204.7004(e) Modifications to calls or orders for additional explanation.
2.1.4. When indicating the modification authority on a contract modification, the ACOs should use the applicable contract clause (e.g. Modification Guide Quick Reference Table)
2.1.5. As appropriate, the ACO will obtain adequate consideration for changes in contract requirements and document the file with a memorandum for record. Consideration may take the form of a contract price adjustment or other means commensurate with the change in requirements such as expedited delivery, product quality improvements, performance improvements, warranties, and conversion to best practices. The ACO should discuss the potential changes to the contract with the PCO to determine what would be acceptable.
2.1.6. Process Modifications. Modifications can be processed in three ways: modification of a single contract using the MDO eTool, manual modification of one or a group of contracts, or a computer generated mass modification (ARZ modification) of a group of contracts.
2.1.6.1. ACOs shall issue modifications using the MDO eTool unless an exception listed in paragraph 4 below applies. When an exception applies the contract actions shall be modified manually using a secure procedure and applicable form (e.g. SF 30). Manual processing of unclassified contract actions must receive prior approval from the CMO Contracts Director unless the urgency of the circumstances requires immediate action. The ACO shall ensure that contract actions issued manually are transmitted to the Mechanization of Contract Administration Service (MOCAS) system or System for Integrated Contract Management (SICM) system, posted to EDA, and reported to the Federal Procurement Data System (FPDS) unless an exception applies.
2.1.6.2. ACOs shall use the EDA-Only Contract Modification capability within the MDO eTool to modify contracts assigned for administration that are not in MOCAS. For example, it would apply to DCMA International contracts that are in SICM.
2.1.6.3. Mass modifications (ARZ) are not issued using MDO and apply to all contracts in MOCAS assigned to a contractor and are processed systematically to update the MOCAS database to reflect transfers between Commercial and Government Entity (CAGE) codes, CMOs, and contractor address changes that may result from a novation agreement, contractor business changes, or DCMA CMO reorganizations, etc. The mass modification (ARZ) process is explained in detail in DCMA Novation, Change of Name and Business Combination instruction.
2.1.6.3.1. A global modification or blanket no-cost change order is issued to modify a large number of contracts involving multiple companies. The approach is used in cases where it's more efficient or practical than having individual ACOs across the Agency issue substantially identical modifications. This approach is employed when:
Delegation of contracting authority is received by DCMA HQs from the affected Defense Departments or Agencies;
The modification does not change the contract value;
The modification is unilateral; and
Use of a global modification has been approved by the DCMA Director or Senior Procurement Executive.
2.1.6.3.2. The mass modifications process may require additional actions by DCMA ACOs (e.g. distribution of modifications to contractors and PCOs, negotiation of supplemental agreements if suppliers reject "no-cost" orders and request equitable adjustment
2.1.7. Modifications for the Defense Logistics Agency (DLA) Other Disbursement Office (ODO) contracts. ACOs shall not issue modifications in MDO for DLA ODO contracts because DLA's contract system cannot receive DCMA's electronic modifications and related data. DLA and DCMA are working to resolve issues within the scope of the Performance Based Agreement signed on May 20, 2009. In the interim, ACOs should determine the need for modification, collect any relevant supporting documentation, provide an ACO recommendation and forward the package to the DLA PCO. The DLA PCO will issue the modification and provide a copy to the ACO.
3. Assign Contract Line Items. When a contract modification or delivery order adds new line items, the ACO shall assign new contract line item number, subline item numbers or exhibit line item numbers in accordance with the procedures at DFARS 204.7103 Contract Line Items; DFARS 204.7104 Contract Subline Items; andDFARS PGI 204.7105 Contract Exhibits and Attachments. If the modification relates to existing contract line items, subline items, or exhibit line items, the modification should refer to those item numbers. DFARS 204.7106 Contract Modifications provides additional guidance for issuing modifications to existing contract line items or exhibit line items.
4. Issue modifications and delivery orders in accordance with DCMA requirements:
4.1. (ND) Electronic Preparation of DCMA issued Modifications. DCMA CMOs are required to prepare all contract modifications using the MDO eTool except in the situations listed below. This requirement ensures that DCMA isued contract actions are distributed electronically to the Department of Defense EDA web system. The modifications listed below are exceptions from the mandatory use of the MDO eTool.
4.1.1. Mass modifications that includes name changes, address changes, novations, and modifications at the contractor CAGE level
4.1.2. Modification of non-DoD contracts issued by: National institute of Health, National Aeronautics and Space Administration (NASA), NASA Solutions for Enterprise-Wide Procurement (SEWP) IV, and National Science Foundation
4.1.3. Modification of classified and sensitive contracts not in MOCAS
4.1.4. DLA ODO contract modifications (see 2.1.7)
4.2. DCMA CMOs issuing contract actions outside the MDO eTool that do not fall within the exceptions listed above shall request approval from their CMO Contracts Director prior to issuance of the modification.
5. Distribute Contract Modifications and Delivery Orders. Contract modifications and delivery orders shall be distributed in accordance with the procedures set forth in DFARS PGI 204.2 Contract Distribution. DFARS PGI 204.2 states that contracts and modifications shall be distributed electronically. DCMA complies with this mandate through use of the MDO eTool which will automatically post ACO documents to the EDA web system.
5.1. If a modification is issued outside MDO eTool with the approval of CMO Contracts Director, the ACO is responsible for manually updating MOCAS and uploading the modification into EDA. Classified contracts and modifications shall not be uploaded into EDA or input into MOCAS.
5.2. Coordination and Distribution of Global Modifications (ARZ/Mass/Transfer Modifications). To ensure successful systematic transfers, DCMA CMOs are required to coordinate and distribute global modifications as follows:
5.2.1. Global modifications are reviewed and approved by a Functional Information Resource Management (FIRM) team member.
5.2.2. The ACO advises the FIRM team member of the desired output product.
5.2.3. The FIRM post the modification to EDA and sends a copy to the Defense Logistics Information Service to ensure that the CAGE code file is updated as necessary in compliance with DFARS 204.7204 Maintenance of the CAGE file. The modification shall be mailed to the following address: DLA Logistics Information Service DLIS-SBB Federal Center, 74 Washington Avenue North, Battle Creek, MI 49017-3084.
5.2.4. The cognizant ACO shall notify DCMA Special Programs of all Global Modifications via an email to the DCMAS INBOX with the modification attached.
6. Track Contract Modifications. After a modification is issued, the ACO should record the modification in a manually created modification index or utilize the "Browse Contract Mod Page " generated by the Contract View eTool. The listing should include both ACO and PCO modifications.
7. (ND) The Federal Procurement Data System (FPDS) is a Government wide system that collects Government contracts information that is used to provide insight to the public and the Government on how and where tax dollars are being spent. FAR 4.6 Contract Reporting established the Contract Action Report (CAR) for reporting all contract actions exceeding the micro-purchase threshold of $3,000 and any modification regardless of dollar value that changes previously reported FPDS data (e.g. vendor name, final delivery date, place of performance or change in business size, etc.). Before issuing a modification, ACOs should verify that the contract being modified has been posted to FPDS, ensure modification is numbered correctly, and verify all contractual documents are posted to the EDA system. Per DFARS PGI 204.606(3)(xii)(D), ACOs will enter a short description of what is being procured by the action in the description requirement data field. This field must be updated in every CAR. This should be entered in plain English with no acronyms or military jargon such that the public can understand what is being acquired by the Department. When reporting modifications, do not use this field to explain what type of procurement process is accomplished (e.g. exercise option year, incremental funding) but continue to enter a description of the item or service to be purchased. ACOs shall review and validate the accuracy of the CAR prior to releasing the contract action. However, if the CAR fails validation as a result of data that originated from a source other than the ACO modification or delivery order, the modification or delivery order may be released if the ACO determines that a timely resolution of the data error(s) is unlikely and would negatively impact the procurement process. The ACO shall take immediate action to resolve the CAR validation error(s). The MDO 3.1 upgrade establishes a system integration connection between MDO and FPDS. As a result CARs are due at the same time that a modification or order is released as required by FAR 4.604(b)(2) instead of within 3 business days as required by FAR 4.604(b)(3) for writing systems not integrated with FPDS.
7.1. The term "contract action" does not include grants, cooperative agreements, other transactions, real property leases, federal stock requisitions, training authorizations, or other non-FAR based transactions. Furthermore, it does not include classified contracts, agreements, and orders. A complete list of actions that are not required to be reported are stated in FAR 4.606(c) and DFARS PGI 204.606(2).
7.2. If the ACO or PCO determines that one of the conditions stated in FAR 4.605(b) applies as an alternative or justification for concealing the identity of the vendor, use the Generic Data Universal Numbering System (DUNS) number and corresponding CAGE code in the CAR submitted to the FPDS. The PCO and ACO shall establish internal review procedures that ensure they are used correctly.
7.3. For each agency required to report its contract actions to the General Services Administration (GSA), the Chief Acquisition Officer of that agency is required to submit an annual certification within 120 days after the end of each fiscal year, stating to what degree the agency CAR data for the preceding fiscal year is complete and accurate in compliance with FAR 4.604(c).
8. ACOs shall comply with DCMA Automation Requirements. CMOs shall ensure modifications and delivery orders are processed in the following automated tools, if the security classification of the contract allows:
8.1. MDO eTool can be used to issue contract modifications for contracts in MOCAS or SICM. The "EDA-Only Contract Modification" functionality in MDO must be used to issue a modification for contracts SICM. ACOs shall use the MDO eTool to prepare all contract actions to include modifications, orders issued under blanket purchase agreements, basic ordering agreements, and long term contracts, in order to comply with the requirements of FAR 4.6 Contract Reporting. The ACO can utilize MDO's CAR generation button to create CARs for each contract action that exceeds the micro purchase threshold of $3,000 or any modification that changes previously reported FPDS CAR data regardless of dollar value (e.g. vendor name, final delivery date, place of performance).
8.2. The MDO 3.1 eTool is designed to create the CAR and after validation and approval by the ACO to populate FPDS with the information from contract actions data required by FAR 4.6 Contract Reporting. This is important because most of the data elements in the CAR will be uploaded from the data already in FPDS as a result of the PCO CAR submitted to FPDS at the time of contract award. MDO, Shared Data Warehouse, and programmed inputs provide additional data. ACOs should choose the "Reason for Modification Value" that best describes the modification. For example, modifications issued during closeout of the contract to deobligate remaining funds should be identified as "Close Out" on the CAR unless another value (e.g. address change) is more applicable. "Funding Only Action" and "Other Administration Action" should be used only when another value does not apply.
8.3 MOCAS users must ensure that modifications and orders issued by MDO eTool successfully transmit through the Electronic Document Interchange to MOCAS, post to EDA, and FPDS. Furthermore, the ACO shall review the accuracy of the CAR created by MDO before releasing for posting to FPDS system. Modifications should never be issued to make system corrections in MOCAS or SICM.
9. A Generic DUNS number and corresponding CAGE code represent a category of vendors not specific to any individual or entity. Using these codes hides the true identity of the vendor and makes it impossible to correctly process electronic invoices, receiving reports, and payments. Therefore, Generic DUNS numbers and CAGE codes shall not be used as contractor identification on contract awards or modifications unless a condition stated in FAR 605(b) applies as an alternative or justification for concealing the identity of the vendor.
Competencies/Certifications
Under the Defense Acquisition Workforce Improvement Act (DAWIA), Contract Specialists should be certified in accordance with their grade and position held.
Training Matrix
"Process Title" Training Matrix Template
What
TASKS are
required to
accomplish this
process?
Methods
of training, including KSAs
On-the-Job
Training (OJT)
Computer
Based Training (CBT)
Course
(Commercial, College/ Vocational)
Contractor
Sponsored Training
DCMA
Developed
Administrative Task (The task is wholly enabled by the contents of the instruction and requires no training intervention)
Task 1 – How to Issue Contracts, Mods
x
X
Task 2 – How to Use MDO Reports/Cubes Capabilities
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x
Task 3 Procedure for reviewing and releasing FPDS Contract Admin Reports
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